S. Korea to pay 760 billion won for U.S. troops in 2009

SEOUL, Dec. 23 (Yonhap) -- South Korea will pay 760 billion won (US$571 million) for the stationing of 28,500 American troops here next year under a new deal on their defense cost sharing, the foreign ministry said Tuesday.

The agreement, reached after five rounds of talks since July, calls for South
Korea to increase its share each year until 2013, in accordance with the consumer
price index.
"But the annual hike rate will be capped at 4 percent," the ministry said in a
press release.
Seoul provided the U.S. with 725.5 billion won in cash last year and is expected
to pay the same amount this year with an adjustment for inflation
Given the domestic inflation rate of 2.5 percent in 2007, South Korea will offer
about 760 billion won next year.
South Korea will also phase out the cash assistance within the next three years
to provide facilities and other materials in an effort to enhance transparency in
the burden-sharing, according to the ministry.
South Korea has instead agreed to allow the U.S. to use the SMA funds to relocate
the U.S. Second Infantry Division to a consolidated base in Pyeongtaek, 70 km
south of Seoul, which would drastically increase South Korea's financial
contributions to the overall base relocation program.
Under the 2004 Land Partnership Plan (LPP) deal, the U.S. promised to pay all
costs for the relocation of the frontline division, while South Korea said it
would shoulder the cost of transferring the Yongsan Garrison in central Seoul to
Pyeongtaek.
"The agreement this time reflects the South Korean government's position to share
the burden in an appropriate and rational way to meet our financial capability,
as well as the U.S. position to secure stable assistance for its troops in South
Korea," the ministry said.
The ministry plans to seek parliamentary approval on the deal as early as
possible, officials said. The U.S. troops are stationed in South Korea as a legacy
of the 1950-53 Korean War.
lcd@yna.co.kr